THE ACCOUNTING CYCLE

The following are transactions of O.U.T Law Office for the period:
a. Atty. O.Tal invested the following in his newly opened Law office:
Cash 60,000
Office Equipment 40,000
b. The Law office purchased supplies, 5,000 cash.
c. The Law office paid rent of the office, 3,000.
d. Rendered services to clients on cash basis, 100,000.
e. Paid the salary of the office secretary, 4,500. The amount is net of 300 withholding tax and 200
SSS Premium.
f. Rendered services to clients:
Open Accounts 50,000
Promissory Note 150,000
g. Purchased office equipment, 20,000, 40% down, balance on open account.
h. Collected 20,000 of the accounts receivable.
i. Paid 2,000 of the accounts payable.
j. Paid electric bill of 1,000 and telephone bill of 1,200.

Required:
1. Using the following chart of accounts, journalize the following transactions.
CHART OF ACCOUNTS
ASSETS LIABILITIES
000 Cash 100 Accounts Payable
001 Accounts Receivable 101 Notes Payable
002 Notes Receivable 102 Withholding Tax Payable
003 Unused Office Supplies 103 SSS Premium Payable
004 Office Equipment
EXPENSES CAPITAL
300 Rent Expenses 200 Atty. O. Tal, Capital
301 Salaries Expenses REVENE
302 Withholding Tax 400 Service Revenue
303 SSS Premium
304 Utilities Expenses

2. Post the above transactions directly to the ledger and extract the balance.
3. Prepare the unadjusted trial balance.
4. From the trial balance, assign values to the following accounting elements:
a. Assets
b. Liabilities
c. Atty.O Tal, Capital
d. Revenue
e. Expenses
5. Prepare the financial statements: Statement of Comprehensive Income, Statement of Changes
in Owner’s Equity, Statement of Financial Position and Statement of Cash Flows.
6. Prepare the closing entries.
7. Prepare the post-closing trial balance.
GENERAL JOURNAL
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Date PARTICULARS P DEBIT CREDIT
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 GENERAL JOURNAL
Page No.__________
Date PARTICULARS P DEBIT CREDIT
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 GENERAL LEDGER
Account Title: ___________________ Account No. _____
Date Item PR Debit Date Item PR Credit

GENERAL LEDGER
Account Title: ___________________ Account No. _____
Date Item PR Debit Date Item PR Credit

GENERAL LEDGER
Account Title: ___________________ Account No. _____
Date Item PR Debit Date Item PR Credit

GENERAL LEDGER
Account Title: ___________________ Account No. _____
Date Item PR Debit Date Item PR Credit
 GENERAL LEDGER
Account Title: ___________________ Account No. _____
Date Item PR Debit Date Item PR Credit

GENERAL LEDGER
Account Title: ___________________ Account No. _____
Date Item PR Debit Date Item PR Credit

GENERAL LEDGER
Account Title: ___________________ Account No. _____
Date Item PR Debit Date Item PR Credit

GENERAL LEDGER
Account Title: ___________________ Account No. _____
Date Item PR Debit Date Item PR Credit
 GENERAL LEDGER
Account Title: ___________________ Account No. _____
Date Item PR Debit Date Item PR Credit

GENERAL LEDGER
Account Title: ___________________ Account No. _____
Date Item PR Debit Date Item PR Credit

GENERAL LEDGER
Account Title: ___________________ Account No. _____
Date Item PR Debit Date Item PR Credit

GENERAL LEDGER
Account Title: ___________________ Account No. _____
Date Item PR Debit Date Item PR Credit
 GENERAL LEDGER
Account Title: ___________________ Account No. _____
Date Item PR Debit Date Item PR Credit

GENERAL LEDGER
Account Title: ___________________ Account No. _____
Date Item PR Debit Date Item PR Credit

_______________________________________________________________
UNADJUSTED TRIAL BALANCE
_________________________________________________
___________________________________________________
Statement of Comprehensive Income
_______________________________________

___________________________________________________
Statement of Changes in Owner’s Equity
_______________________________________
___________________________________________________
Statement of Financial Position
_______________________________________

___________________________________________________
Statement of Cash Flows
_______________________________________
 GENERAL JOURNAL
Page No.__________
Date PARTICULARS P DEBIT CREDIT
R

_______________________________________________________________
POST-CLOSING TRIAL BALANCE
_________________________________________________